These and other important factors, including those discussed under Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, and under Part II, Item 1A, “Risk Factors” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, may cause the Company’s actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained therein. Before making a decision to purchase ExOne common stock, you should carefully consider all of the factors identified in its Annual Report on Form 10-K and Quarterly Report on Form 10-Q that could cause actual results to differ from these forward-looking statements.
FINANCIAL TABLES FOLLOW.
The ExOne Company Statement of Consolidated Operations (in thousands, except per-share amounts) (Unaudited) |
||||||||||
Three Months Ended |
% |
|||||||||
March 31, |
Change |
|||||||||
2020 |
2019 |
|||||||||
| Revenue | $ |
13,383 |
|
$ |
9,579 |
|
40% |
|||
| Cost of sales |
|
9,754 |
|
|
6,937 |
|
41% |
|||
| Gross profit |
|
3,629 |
|
|
2,642 |
|
37% |
|||
| Gross margin |
|
27.1 |
% |
|
27.6 |
% |
||||
| Research and development |
|
2,476 |
|
|
2,432 |
|
2% |
|||
| Selling, general and administrative |
|
6,163 |
|
|
5,423 |
|
14% |
|||
| Gain from sale-leaseback of property and equipment |
|
(1,462 |
) |
— |
|
100% |
||||
|
|
7,177 |
|
|
7,855 |
|
(9%) |
||||
| Operating loss |
|
(3,548 |
) |
|
(5,213 |
) |
32% |
|||
| Interest expense |
|
64 |
|
|
71 |
|
(10%) |
|||
| Other (income) expense — net |
|
(190 |
) |
|
12 |
|
NM |
|||
|
|
(126 |
) |
|
83 |
|
NM |
||||
| Loss before income taxes |
|
(3,422 |
) |
|
(5,296 |
) |
35% |
|||
| Provision (benefit) for income taxes |
|
226 |
|
|
(800 |
) |
NM |
|||
| Net loss | $ |
(3,648 |
) |
$ |
(4,496 |
) |
19% |
|||
| Net loss per common share: | ||||||||||
| Basic | $ |
(0.22 |
) |
$ |
(0.28 |
) |
21% |
|||
| Diluted | $ |
(0.22 |
) |
$ |
(0.28 |
) |
21% |
|||
| Weighted average shared outstanding (basic and diluted) |
|
16,369 |
|
|
16,253 |
|
||||
| NM: Not Meaningful |
||||||||||
| The ExOne Company Consolidated Balance Sheet (in thousands, except per-share and share amounts) (Unaudited) |
||||||||
| March 31, |
December 31, |
|||||||
| 2020 |
2019 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
16,813 |
|
$ |
5,265 |
|
||
| Restricted cash |
|
508 |
|
|
978 |
|
||
| Accounts receivable — net |
|
4,954 |
|
|
6,522 |
|
||
| Current portion of net investment in sales-type leases |
|
289 |
|
|
213 |
|
||
| Inventories — net |
|
21,653 |
|
|
19,770 |
|
||
| Prepaid expenses and other current assets |
|
2,787 |
|
|
2,182 |
|
||
| Total current assets |
|
47,004 |
|
|
34,930 |
|
||
| Property and equipment — net |
|
20,720 |
|
|
38,895 |
|
||
| Operating lease right-of-use assets |
|
4,789 |
|
|
432 |
|
||
| Net investment in sales-type leases — net of current portion |
|
712 |
|
|
738 |
|
||
| Other noncurrent assets |
|
244 |
|
|
371 |
|
||
| Total assets | $ |
73,469 |
|
$ |
75,366 |
|
||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ |
155 |
|
$ |
153 |
|
||
| Accounts payable |
|
4,385 |
|
|
5,818 |
|
||
| Accrued expenses and other current liabilities |
|
4,590 |
|
|
6,942 |
|
||
| Current portion of operating lease liabilities |
|
1,684 |
|
|
158 |
|
||
| Current portion of contract liabilities |
|
13,646 |
|
|
11,846 |
|
||
| Total current liabilities |
|
24,460 |
|
|
24,917 |
|
||
| Long-term debt — net of current portion |
|
1,171 |
|
|
1,211 |
|
||
| Operating lease liabilities — net of current portion |
|
3,105 |
|
|
274 |
|
||
| Contract liabilities — net of current portion |
|
230 |
|
|
286 |
|
||
| Other noncurrent liabilities |
|
115 |
|
|
96 |
|
||
| Total liabilities |
|
29,081 |
|
|
26,784 |
|
||
| Contingencies and commitments | ||||||||
| Stockholders' equity | ||||||||
| Common stock, $0.01 par value, 200,000,000 shares authorized, 16,386,487 (2020) and 16,346,960 (2019) shares issued and outstanding |
|
164 |
|
|
163 |
|
||
| Additional paid-in capital |
|
177,141 |
|
|
176,850 |
|
||
| Accumulated deficit |
|
(120,596 |
) |
|
(116,948 |
) |
||
| Accumulated other comprehensive loss |
|
(12,321 |
) |
|
(11,483 |
) |
||
| Total stockholders' equity |
|
44,388 |
|
|
48,582 |
|
||
| Total liabilities and stockholders' equity | $ |
73,469 |
|
$ |
75,366 |
|
||
| The ExOne Company Statement of Consolidated Cash Flows (in thousands) (Unaudited) |
||||||||||
| Three Months Ended |
||||||||||
| March 31, |
||||||||||
| 2020 |
2019 |
|||||||||
| Operating activities |
|
|||||||||
| Net loss | $ |
|
(3,648 |
) |
$ |
|
(4,496 |
) |
||
| Adjustments to reconcile net loss to net cash used for operations: |
|
|||||||||
| Depreciation |
|
923 |
|
|
1,165 |
|
||||
| Equity-based compensation |
|
292 |
|
|
439 |
|
||||
| Amortization of debt issuance costs |
|
19 |
|
|
23 |
|
||||
| Provision (recoveries) for bad debts — net |
|
51 |
|
|
(73 |
) |
||||
| Provision for slow-moving, obsolete and lower of cost or net realizable value inventories — net |
|
22 |
|
|
107 |
|
||||
| Foreign exchange (gains) losses on intercompany transactions — net |
|
(165 |
) |
|
(11 |
) |
||||
| Gain from sale-leaseback of property and equipment |
|
(1,462 |
) |
— |
||||||
| Gain from disposal of property and equipment — net |
|
(2 |
) |
— |
||||||
| Deferred income taxes |
|
195 |
|
— |
||||||
| Changes in assets and liabilities, excluding effects of foreign currency translation adjustments: |
|
|||||||||
| Decrease in accounts receivable |
|
1,487 |
|
|
2,877 |
|
||||
| (Increase) decrease in net investment in sales-type leases |
|
(50 |
) |
|
87 |
|
||||
| Increase in inventories |
|
(2,146 |
) |
|
(1,576 |
) |
||||
| Increase in prepaid expenses and other assets |
|
(672 |
) |
|
(509 |
) |
||||
| Decrease in accounts payable |
|
(1,408 |
) |
|
(793 |
) |
||||
| Decrease in accrued expenses and other liabilities |
|
(24 |
) |
|
(1,748 |
) |
||||
| Increase in contract liabilities |
|
1,849 |
|
|
3,122 |
|
||||
| Net cash used for operating activities |
|
(4,739 |
) |
|
(1,386 |
) |
||||
| Investing activities |
|
|||||||||
| Capital expenditures |
|
(338 |
) |
|
(347 |
) |
||||
| Proceeds from sale of property and equipment |
|
16,228 |
|
— | ||||||
| Net cash provided by (used for) investing activities |
|
15,890 |
|
|
(347 |
) |
||||
| Financing activities |
|
|||||||||
| Payments on long-term debt |
|
(39 |
) |
|
(36 |
) |
||||
| Proceeds from exercise of employee stock options |
|
— |
|
165 |
|
|||||
| Taxes related to the net share settlement of equity-based awards |
|
— |
|
(68 |
) |
|||||
| Other |
|
(3 |
) |
|
(5 |
) |
||||
| Net cash (used for) provided by financing activities |
|
(42 |
) |
|
56 |
|
||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(31 |
) |
|
(121 |
) |
||||
| Net change in cash, cash equivalents, and restricted cash |
|
11,078 |
|
|
(1,798 |
) |
||||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
6,243 |
|
|
9,140 |
|
||||
| Cash, cash equivalents, and restricted cash at end of period | $ |
|
17,321 |
|
$ |
|
7,342 |
|
||
|
|
||||||||||
| Supplemental disclosure of noncash investing and financing activities |
|
|||||||||
| Transfer of internally developed 3D printing machines from inventories to property and equipment for internal use or leasing activities | $ |
|
852 |
|
$ |
|
819 |
|
||
| Transfer of internally developed 3D printing machines from property and equipment to inventories for sale | $ |
|
823 |
|
$ — |
|||||
| Property and equipment included in accounts payable | $ |
|
56 |
|
$ |
|
23 |
|
||
| Property and equipment included in accrued expenses and other current liabilities | $ |
|
— |
$ |
|
7 |
|
|||
| Debt issuance costs included in accounts payable | $ |
41 |
|
— |
||||||
| The ExOne Company Additional Information (Unaudited) |
||||
| Three Months Ended | ||||
| March 31, | ||||
| 2020 |
2019 |
|||
| 3D printing machine units sold: | ||||
| Direct (Metal) | 9 |
6 |
||
| Indirect (Sand) | 5 |
2 |
||
| 14 |
8 |
|||
| The ExOne Company Adjusted EBITDA Reconciliation (in millions) (Unaudited) |
||||||||
| Three Months Ended |
||||||||
| March 31, |
||||||||
| 2020 |
2019 |
|||||||
| Net loss | $ |
(3.6 |
) |
$ |
(4.5 |
) |
||
| Interest expense |
|
0.1 |
|
|
0.1 |
|
||
| Provision (benefit) for income taxes |
|
0.2 |
|
|
(0.8 |
) |
||
| Depreciation |
|
0.9 |
|
|
1.2 |
|
||
| Equity-based compensation |
|
0.3 |
|
|
0.4 |
|
||
| Gain from sale-leaseback of property and equipment |
|
(1.5 |
) |
— |
||||
| Other (income) expense — net |
|
(0.2 |
) |
|
0.0 |
|
||
| Adjusted EBITDA | $ |
(3.8 |
) |
$ |
(3.6 |
) |
||
